1. Third Party Logistics (3PL)
Chapter 3

2. Outsourcing fulfils 2 needs
It improves service levels by improving flexibility and inventory management
It reduces costs in various ways
Outsourcing fulfils 2 needs

3. Services of 3pl Basic services Physical contract logistics services
Management contract logistics services
Integrated contract logistics
Services of 3pl

4. Using 3pl providers can allow
To penetrate new markets
Reduce the inherent financial investment risks like owning trailers and warehouses
Coordinate producers and distributors within a global approach
Access new technologies, sophisticated warehousing operations or new delivery options
Using 3pl providers can allow

5. Strategic risk
Commercial risk
Management risk
Risks associated

6. Benefits from 3pl services
Lower cost
Improved expertise
Market knowledge and data access
Improved operational efficiency
Improved customer service
Ability to focus on core business
Greater flexibility
Benefits from 3pl services

7. Decision before allocation
Company needs(is logistics a core competence?)
Tangible values (are there any measurable advantages?)
Management commitment
Provider capabilities
Decision before allocation

8. Queries?